After focusing on the majors yesterday, it’s time to set our sights on hot forex trading opportunities on AUD/JPY and GBP/CHF. Check them out!
AUD/JPY is knocking on the 76.00 major psychological handle! As you can see, the area has been serving as resistance for the pair since late May.
What makes the retest more interesting today is that it’s the first one since the 100 SMA has crossed above the 200 SMA on the 4-hour time frame.
Are we looking at a breakout in the making? Take note that stochastic is also flashing an overbought signal, which could deter some of the bulls from charging.
If the pair does break above the level, then you can ride the breakout and aim for the next inflection points closer to 77.00 or 78.00.
If you believe that this will be another failed retest, however, then you can also short at the earliest signs of bearish momentum and think about adding up in case the pair breaks through the 100 and 200 SMA support levels.
Not feeling like trading comdolls today? Here’s one for ya!
GBP/CHF is chillin’ like ice cream fillin’ at 1.2400, a level that has been an area of interest for the pair since January 2017.
Will the consolidation lead to a bounce? Buying at the first signs of bullish momentum would give you a good reward-to-risk ratio especially if the pair pops back up to its 1.2900 and 1.3400 previous resistance points.
What if the consolidation leads to a downside breakout instead? After all, there’s a teeny-tiny descending triangle that might lead to a cool breakout once the pair starts dipping below 1.2400.
If trading downside action is your thing, then you could wait until the pair makes a convincing break below the psychological handle and maybe aim for the previous support levels near 1.2175 or even 1.1950.